£8k inherited

Maybeanotherday

Hello, can anyone give me any advice what to do with £8k?
We have a ar on finance and we've been toying with paying this off, we've looked at saving accounts but they don't look to have that much of a return...anyone any ideas :money:

opinions4u

1) Clear debts.

2) Don't build debts up again.

3) Put 3 months net pay in a savings account (e.g. Egg or The AA) and leave it there for a genuine crisis.

4) If there's anything left over, treat yourself.

5) Open another savings account and pay an amount in to it every pay day - then when you replace the car you won't need finance.

fairtrade

Paying off all debts is the sensible option. Any residual should be used in an ISA or AN/other tax free investment, unless you wish to risk your capital. With the current savings rates so low you would save more by paying off any debt, unless it was interest free. An emergency fund is also a sensible idea as I imagine there are 3 appliances in your home that you could not live without.